Telecom - Indian Telecom Tariffs Are The Most Affordable In The World: ICICI Securities

ICICI Securities Report

India Telecom Services’ tariffs for popular plans have rose over two times since July ’17 yet increase data subscriber adoption and grow data consumption which establishes inelastic nature and higher ‘consumer surplus’. Despite the rise in tariffs, India’s telecom services are most affordable globally, and Indian consumers enjoy highest ‘consumer surplus’.

India has among the lowest telecom tariff as % of gross national income per capita and most affordable tariff as per International Telecommunication Union data base.

This gives us comfort that Indian telecom services provider can increase tariff by at least ~1.5 times over the next five years yet maintaining status of being the most affordable.

India telecom tariff as % of GNIpc is at 1.11% compared to 1.6% for economies whose GNIpc is under $ 5,000; India’s tariff is just $ 2 compared to $ 4 (average).

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